Mexican telecoms giant America Movil announced on 11 March that it has acquired the operations of regional operator Digicel in El Salvador and Honduras.
As part of the deal, America Movil will sell its Jamaican operations to Digicel.
In separate…
Mexican telecoms giant America Movil announced on 11 March that it has acquired the operations of regional operator Digicel in El Salvador and Honduras.
As part of the deal, America Movil will sell its Jamaican operations to Digicel.
In separate statements, America Movil and Digicel said that they expected the deal to be completed in Q2 2011.
Digicel said that the financial terms of the deal were not being disclosed as the transaction was still subject to regulatory and governmental approvals, but revealed that it will be on the receiving end of a net cash payment.
The deal means that Digicel’s operations will be overwhelmingly focussed in the Caribbean, although it will still retain a small presence in French Guiana and Panama.
Jose Magana, an analyst on Latin American telecoms at Pyramid Research, said that the key motivation for the deal for both companies was to focus on markets where they already have a strong presence.
According to Jose Magana, Tigo (a subsidiary of Luxembourg-based Millicom) has a 38% share of Central American markets aside from Mexico and Panama.
America Movil’s brand, Claro, has a share of only 30% in the same markets.
